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PETITIONER: KESHAV MILLS LTD.
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX, BOMBAY
DATE OF JUDGMENT: 30/01/1953
BENCH: BHAGWATI, NATWARLAL H. BENCH: BHAGWATI, NATWARLAL H. MAHAJAN, MEHR CHAND DAS, SUDHI RANJAN BOSE, VIVIAN
CITATION: 1953 AIR 187 1953 SCR 950 CITATOR INFO : E&D 1959 SC 82 (8) F 1959 SC1165 (11) D 1961 SC 921 (9,11,20,21) R 1964 SC1766 (10) R 1965 SC1636 (7) R 1965 SC1862 (28) RF 1966 SC 870 (5) RF 1977 SC1802 (14)
ACT: Indian Income-tax Act (XI of 1922), ss. 4 (1) (a) and (c), 13 Non-resident-Accounts in mercantile system-Sale of goods in British India through agents-Assessability of profits derived from such sale-Provision of law applicable to such cases-Income-tax authorities, whether bound to compute income according to mercantile system-Applicablity of s.13 to non-residents.
HEADNOTE: A non-resident company manufactured textile goods at P out- side British India and sold the goods ex-mills. A firm, R & Co., guaranteed the sale-price of goods sold ex-mills by the company to purchasers at Ahmedabad within British India. As the company maintained its accounts according to the mercantile system, the company debited R & Co., with the price of goods sold and credited the sales account with the amount of the bills. R & Co., collected the amounts of the bills f...